Revealed: The real reason Toyota has been slow to introduce electric cars

A top executive for Toyota Australia has given the deepest insight yet into why the Japanese giant – the world's biggest automaker by volume – has been slow to join the electric-car race.

Toyota is poised to make up lost ground with a record ramp-up of electric vehicles by the end of this decade.

The company announced at this week's Tokyo Motor Show it will soon switch from manufacturing 40,000 electric cars a year to 3.5 million per annum by 2030.

However, responding to ongoing criticism Toyota has been slow to embrace electric cars, the sales and marketing boss for Toyota Australia, Sean Hanley, doubled down on Toyota's position and offered the company's most detailed explanation to date.

"When you look at history, Toyota is doing exactly what it's done for the past 80 years," Mr Hanley told Australian media at the Tokyo Motor Show.

"It's not about being first to market always. It's about providing different solutions that are needed by different buyers in diverse regions around the world. Australia being one of those unique regions ... where the car is used for multiple purposes in a very diverse geographic landscape.

"We are a brand that stays firm to a long term plan (and) we run our own race, constantly developing and redeveloping and refining our plans. 

"History indicates that this is the recipe for our success as a brand. Look at the last 22 years in the Australian market, what we achieved with hybrids even though we actually weren't first with hybrid on the Australian market."

When asked if it was unreasonable for Toyota to argue the majority of new-car buyers still need vehicles with long driving range, Mr Hanley said:

"When you look at the landscape, look at the mining industry, look at the agriculture industry, look at what we fondly know and respectfully know as our Grey Nomad population – and you look at the lifestyle and leisure that Australians enjoy – we would say that's a huge market (customer base). 

"Have a look at LandCruiser sales. Have a look at HiLux sales, have look at Prado sales, (and) all of the SUVs. I'm telling you now, there’s a big range of people, the silent majority of Australians who aren't necessarily speaking, who require these vehicles."

Mr Hanley said while electric cars will continue to grow in popularity in Australia and overseas, they were still not suitable for everyone.

"Whilst electrification is accelerating – there's no doubt about that – there is still a huge market of people that do need their 700 or 800 (kilometre) driving range, who do want to tow 3.5-tonnes, and don't want to have the fear of whether they're going to get home or not, because there's not a (recharging) station or a car capable that's affordable for them."

Mr Hanley suggested Toyota was being punished for being honest about maintaining a broad range of engine options – including petrol, diesel, hybrid, plug-in hybrid and hydrogen – as the debate has been hijacked by electric-car lobby groups with vested interests seeking government handouts.

"You're seeing a car company that's being honest with (customers) and saying 'not every part of the globe can do electric cars only’," said Mr Hanley. 

"(Electric cars are) part of the solution to carbon neutrality, but it's only one piece of the puzzle. And if you only invest in a single way of getting to carbon neutrality (such as electric cars), then you're essentially ignoring all the other wonderful opportunities and technologies that exist in hydrogen fuel cell, synthetic fuels and so on."

The comments from the sales and marketing boss of Toyota Australia echo those of the global boss of Toyota, Koji Sato, who opened his Tokyo Motor Show speech – ahead of the unveiling of its future electric-car plans – by saying:

"There are as many diverse needs and values as there are people in the world. The future is not decided by someone else; the future is something we all create. This is what we believe."